Prestige beauty retailer Sephora will now sell into India’s increasingly lucrative beauty market via Reliance Beauty & Personal Care Limited, a subsidiary of Reliance Retail Ventures Limited (RRVL).
Sephora, which first launched into the Indian beauty market in 2012 has been ran by Arvind Fashions for the past eight years.
Reliance Beauty & Personal Care has now signed a share purchase agreement with Arvind Fashions to buy Arvind Beauty Brands Retail for Rs 99.02 crore (approximately €11.06mn).
The partnership gives RRVL exclusive rights to build and enhance Sephora's presence in India across all channels.
The Indian retail group will take over the current India operations of Sephora's 26 stores across 13 cities and plans to expand Sephora's presence in the country.
The Indian beauty and personal care market is estimated at around €15.8bn and set to grow at a 11% CAGR, according to a press release from Sephora.
The market is still believed to be in its infancy and one of the largest untapped consumer markets globally.
"An opportune time" to invest in expansion
Of the move, Asia President of Sephora, Alia Gogi, said: "Rising affluence, increasing urbanisation and the proliferation of social media have driven greater awareness of self-care and beauty, unlocking major opportunities for prestige beauty. It is an opportune time for us to invest in expanding our presence, and bring new, exciting, and exclusive brands to delight our growing community of beauty enthusiasts."
RRVL is India’s largest retailer and owned by billionaire Mukesh Ambani. It has over 18,650 stores and digital commerce platforms in India, across Grocery, Consumer Electronics, Fashion & Lifestyle and Pharma sectors. The group reported a turnover $31.7bn (€28bn) and net profit of $1.1bn for the year ended March 31, 2023.
Earlier this year RRVL also launched Tira, an online shop selling beauty products.
Market "at a tipping point"
Of the acquisition, Director of Reliance Retail Ventures Limited, Venkatachalam (V) Subramaniam, said: "The burgeoning Indian beauty market is being propelled by a new generation of customers with a strong desire to express their individuality, rising aesthetic refinement and a growing number of women in the young workforce of India.
Subramaniam said he believed that the India beauty market is “at a tipping point,” making it the perfect climate for the partnership. “Importantly this partnership will help us straddle across the value chain in beauty and personal care segment," he said.
Sephora itself has 2,700 stores across the globe, as well as e-commerce and digital platforms. It has been part of the LVMH Group since 1997 and now curates almost 300 brands, as well as its own label, Sephora Collection.
